London rental prices rising at slower rate than rest of UK
London is seeing rent prices increasing at a rate that is slower than the rest of the country, according to new research. The latest report from ARLA Propertymark shows that supply is continuing to fall in the capital and prices are not experiencing the same hike as the rest of the UK.
February saw just eight per cent of letting agents in London report an increase in rental prices, compared to 25 per cent on a national level, according to the monthly private rented sector report. In fact, around a quarter (25 per cent) of London estate agents saw a fall in rent prices, compared to ten per cent across the country.
As well as price, London has continued to see a fall in the number of available properties on the private rental market. However, supply is also declining nationally, with February seeing the number of properties managed by letting agents fall by five per cent to 176. This comes after January seeing properties rise to 193 in January.
Despite this fall, February's figures were still better than the same month last year, with a four per cent increase on February 2016's figures.
The number of people looking for properties remained on par with January in February, with 34 prospective tenants registered per member branch. However, this is a decline from February 2016, which stood at 37, and the 40 seen in February 2015.
Although rental prices in London are declining, David Cox, ARLA Propertymark chief executive, says this is a positive sign for those renting or looking to rent in the capital.
"However, this isn’t being seen across the rest of the country, as the national average for the number of agents reporting rent hikes rings alarm bells, he said. "While London’s results indicate a step in the right direction, it must be taken with a pinch of salt."